Marico’s sales growth in the fourth quarter was in the low teens, despite continued inflation.
Marico said on Monday that its consolidated revenue grew in the “low teens” from October to December, owing to sluggish consumer demand throughout the sector due to rising inflation.
According to Marico’s Quarterly Update for Q3 FY22, the business expects its gross margin to rise sequentially but stay down year over year, while operating margins will be close to the previous quarter’s levels. “Slowing consumption trends characterised the quarter, affecting the whole industry. This was mostly due to growing mobility unlocking some pent-up demand for discretionary products, services, and out-of-home consumption, as well as continued inflation affecting overall disposable incomes “It was stated.
In its India business, the corporation has seen “similar patterns” across all its categories. “Rural demand was similarly sluggish, albeit to an extent optically due to the high base,” Marico said.
“Due to poor consumption mood and a solid base,” it continued, “revenue growth in the quarter was in the double digits, while volumes were flat.” “Volume growth, on the other hand, came close to our medium-term goal on a two-year CAGR basis. On a high base, Parachute Coconut Oil had a muted quarter. In terms of value growth, Value Added Hair Oils had a weaker quarter, but on a two-year CAGR basis, it has generated double-digit value growth “It was stated.
Marico’s foreign business grew in constant currency at a solid rate in the teens. As a result, consolidated sales growth in the quarter was in
Marico stated that copra prices were range-bound for most of the quarter before correcting towards the end regarding critical material input costs. “Edible oil prices have begun to fall, while crude oil prices have stayed stable. On a year-over-year basis, we estimate gross margin to rise sequentially but remain lower. The operating margin is forecast to be similar to the previous quarter’s ” it was stated. According to the company, Marico’s medium-term goal is to provide volume-led growth. “Over the medium term, the Company maintains its ambition of delivering sustainable and profitable volume-led growth, driven by the rising brand equity of its core franchises and the critical mass of additional engines of growth,” Marico stated.
Marico’s income from operations stood at Rs 2,122 crore in Q3/FY21.